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Background
The project makes possible the reconstruction of the heart of the city of Beirut
devastated by the war that plagued Lebanon from 1975 to 1990. Its infrastructure was
totally destroyed and its nearly 900 buildings severely damaged. In addition, a huge
environmental problem had been created on the city center's coastline as it was
transformed into a dumping site extending over 250,000 square meters and 14 meter high.
Complex legal property entanglements and an exhausted national treasury meant that Beirut
was unlikely to see its center rebuilt within a foreseeable time. However, the city
center, home all to all of Lebanon's communities, represented the heart of the divided
city and its reconstruction was essential to the post-war healing process.
By associating owners, tenants and investors, a private company was created with nearly
100,000 shareholders able to address urban and financial problems in a comprehensive way,
allowing Beirut to flourish again.
Narrative
The project for the development and reconstruction of the city center of Beirut has
made possible the optimization of an area of the Lebanese capital ravaged by war,
transforming a desolate district into what many Lebanese believe is likely to become the
region's future hub. This has had a tremendous impact on the national mood, encouraging
investment and creating thousands of new jobs both directly and indirectly. By associating
nearly 100,000 people as shareholders, the project has revolutionized business practices
in Lebanon, normally closely associated with family operations. The large shareholders
base means that a significant part of the Lebanese population is directly involved in the
reconstruction process, with a direct stake in its success.
At the end of the war, in 1990, Lebanon was faced with a massive reconstruction program
estimated in the tens of billions of dollars. The government was also confronted with a
long list of priorities, one among many was the development and reconstruction of the
Central District of Beirut. This was an area fiercely fought over during the war because
of what it represents to the Lebanese. The Central District of Beirut houses Parliament
and a number of ministries, the Municipality, the Central Post Office, the traditional
banking district and the city's most celebrated public squares and houses of worship. It
is also of particular significance to the city because, in contrast to other districts in
the divided city, it was traditionally home to all of Lebanon's communities. Its revival
was critical to the healing process necessary to consolidate the peace.
However, the obstacles to its reconstruction were many and, in some cases, seemingly
insurmountable:
1.- The amount of destruction was momentous. For nearly 16 years the central district was
battered by gun fire, so that when peace finally came the infrastructure was totally
destroyed and the 900-odd buildings severely damaged, most of them beyond reasoanable
repair.
2.- In the absence of an alternative, a dumping site was created on the sea front at one
of the extremities of the central district. Nearly 70 percent of this site consisted of
organic waste from households. Totally untreated, the site advanced into the sea, growing
to 250,000 square meters and 14 meters from sea level. It became the major pollutant on
the Eastern Mediterranean. Any reconstruction project would have to deal with this massive
garbage mass.
3.- By conservative estimates, over 80,000 people lay claim -- as owners and tenants -- to
the 900-odd buildings in the city center. Obtaining agreement from even a few hundred
people on how to rebuild one single building is a complex if not impossible task. People
have different views, interests and resources, some may be uninterested, or unavailable,
having set residence abroad. The city center of a capital holds national significance, and
its reconstruction could not be left in abeyance, dependant on so many people, most of
them unable to meet or decide.
4.- Following 16 years of war, Lebanon in 1990 was financially exhausted and the
government would have been unable to embark on the reconstruction or the rehabilitation of
the central district in line with the potential the district represented. The post-war
government faced a long list of priorities in such areas as infrastructure, education,
social needs, institutional restructuring, relocation of hundreds of thousands of
refugees, reconstruction of villages, schools, and hospitals, and the many other
necessities resulting from a long and cruel war.
However, as long as Beirutis had to drive through a battered and desolate central
district, few could be asked to believe that their country was on the road to recoveryn
and that the war years were over. Convincing the powerful Lebanese disapora of the return
of peace was also essential to the rebuilding of the country.
The central district, a unique district in that it represents the heart of the city of
Beirut and is home to all of the country's communities was severely missed by the Lebanese
at home or abroad.
The formula developed, which resulted in the creation of the Lebanese Company for the
Development and Reconstruction of Beirut Central District (SOLIDERE), was to associate
property right holders in the central district (proprietors, tenants and lease-holders)
and investors in a joint-stock corporation that would be charged with the development and
reconstruction of the city center. The majority shareholders would be the property right
holders (two-thirds of capital) and the investors (one third of capital) would offer the
cash component to make sure the project moved forward.
A subscription offer for US$650 million (6.5 million shares of US$100 each) was made from
October 10, 1993 to January 10, 1994. The offer, which drew almost US$1 billion in
applications, resulted in the association of nearly 20,000 Lebanese investors in the
project.
In accordance with an officially-developed and approved Master Plan that defines zoning,
massing, the preservations of archeological finds, architectural monuments and other
aspects of the city's heritage, the city center of Beirut is being developed and rebuilt
by a private-sector company belonging to 100,000 people. The comprehensive approach to
reconstruction has allowed for:
- the optimization of the assets of the city center;
- the treatment of the dump site by integrating it into a land development process,
- a broadly based approach to archeological excavations (hundreds of archeologists and
assistants working on site)
- and the ability to address major urban concerns in a broadly planified way.
All of this is being done at no expense at all to the government. SOLIDERE is executing
and financing the entire top-of-the line infrastructure for the whole 2 million square
meters of land, inluding the expansion and treatment of the landfill. In turn, it will
receive development land on the landfill.
SOLIDERE's main function will be, in fact, to install the entire infrastructure, treat and
expand the landfill, build sea defense lines, restore the 265 preserved buildings, develop
about 20 percent of the land and offer lots for development. By providing an answer to the
problems posed by the development and reconstruction of the central district, SOLIDERE has
encouraged substantial cpaital inflows into the country, created directly and indirectly
thousands of jobs, made possible the quality reconstruction of Beirut's city center and
thus provided Lebanon with an opportunity to reclaim its traditional regional role as a
financial, commercial and tourist center. This is of vital importance for a country
heavily dependant on a service economy. The success of the company will mean the success
of ther reconstruction project, to the benefit of Lebanon and its 100,000 shareholders.
Impact
Reconstruction of a desperately desolate city center
Eradication of 250,000 square meter garbage dump
Transformation of garbage dump into a gracious seaside
Restoration of nearly 300 architecturally significant blds
5,000 direct jobs, tens of thousands more indirectly
Allowed for comprehensive archeological excavations
Comprehensive urban planning for the city center of Beirut
Revived stagnant and morassed economy of a city center
Democratized business practices by associating 100,000 people in a private sector venture
Focused local and international attention on rebuilding\
Created a company large enough to afford international standards of operations and
magament
Gave the Lebanese a long-lost sense of pride in their city
Sustainability
Lebanese urban legislation was set back by the war; however the quality-conscious
reconstruction of the central district addresses issue which had remained totally
unattended for 20 years. These related to areas such as safety (including fire and
earthquakes), ramps for the handicapped, public spaces, green areas, service streets,
transport accessibilities, massing, and aesthetics. By stimulating interest in urban
issues, SOLIDERE contributed to the modernization of rules and regulations governing urban
development. In fact, it was at SOLIDERE's urging that many new legal decisions on
improved urban life were made.
The international and local attention which the reconstruction project has drawn, has
ensured a reater transparency for all operations being carried out in the city center.
This has impacted positively on the way archeological and architectural treasures have
been treated. Nearly 400 archeologists, under the supervision of the Directorate General
of Antiquties and UNESCO, have workd on excavting the many sites. This kind of
international attention would not have been possible if reconstruction had developed piece
meal. The meticulous preservation of heritage has also been attended to in architecture
where 265 buildings, in addition to houses of worship and government buildings, will be
restored to maintain their original facades.
In the area of environment improvement, the reconstruction approach has enabled the city
of Beirut to deal with a major pollutant -- a 250,000 square meter garbage dump -- and
transform it into an agreeable sea coast, with sandy beaches, two tourist marinas, a sea
side promenade and a 80,000 square meter public park, the largest in the heart of Beirut.
In terms of employement, Bovis International has estimated that direct employment on
infrastructure works alone will result in 5,000 jobs in the city center. The impact on the
economy as a whole and the creation of employement has been considerable.
The SOLIDERE example is worth serious consideration in any urban area in need of
revitalization, where problems exist similar to those facing Beirut in 1990. While in
Lebanon these were problems resulting largely from war, the issues involved are also
relevant to areas depressed because of demographic, cyclical developments, poor planning
or other reasons. In many such cases, the concept of a private company -- under careful
public scrutinity -- bringing together property right holders and investors to improve and
optimize the positive features of an urban setting deserves serious consideration. In
Beirut, under very difficult circumstances, it has proved very successful and very
positive for the entire country.
Contact
Sponsor
SOLIDERE, the Lebanese Company for the Development and Reconstruction of Bt
SOLIDERE
Riad Al Solh Street
Beirut
Lebanon
P.O.Box 119493
961-1-646-120/1/2/3
Partners
The Lebanese Government
Maluf, Ramez
Riad Al Solh (Arab Bank Bld. 2nd floor)
Beirut
Lebanon
P.O.Box 119493
961-1-646-120/1/2
The Beirut Municipality
Jaroudi, Ahmad
Riad Al Solh Street (Arab Bank Bld. 2nd)
Beirut
Lebanon
961-1-646-120
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